Singapore Airlines 2010 Annual Report Download - page 132

SINGAPORE AIRLINES
130
notes to the financial statements
31 march 2010
5 Staff Costs (in $ million) (continued)
Share-based compensation expense (continued)
Share-based incentive plans
The RSP and PSP are share-based incentive plans for senior executives and key senior management, which were approved
by the shareholders of the Company on 28 July 2005.
The details of the two plans are described below:
RSP PSP
Plan Description Award of fully-paid ordinary shares Award of fully-paid ordinary shares
of the Company, conditional on of the Company, conditional on
position and individual performance performance targets set at the start of
targets set at the start of a two-year a three-year overlapping performance
performance period based on medium- period based on stretched long-term
term Group and Company objectives. corporate objectives.
Performance At both Company and Group level
Conditions • EBITDAR# Margin • Absolute Total Shareholder
• Value Added per $ Employment Cost Return (TSR) outperform Cost
of Equity (COE)
• Relative TSR against selected
airline peer index companies
Vesting Condition Based on meeting stated performance Vesting based on meeting stated
conditions over a two-year performance performance conditions over a
period, 50% of award will vest. three-year performance period.
Balance will vest equally over the
subsequent two years with fulfilment
of service requirements.
Payout 0% - 150% depending on the 0% - 200% depending on the
achievement of pre-set performance achievement of pre-set performance
targets over the performance period. targets over the performance period.
# EBITDAR denotes Earnings before Interest, Taxes, Depreciation, Amortisation and Rent